Federal Housing Administration needs to shore up its finances

Friday, September 27, 2013 11:33 AM

The Federal Housing Administration will take about $1.7 billion from the U.S. Treasury Department to shore up its insurance fund after losses on defaulted mortgages depleted reserves, Bloomberg reported. The government mortgage insurer will take the draw on Sept. 30, the last day of the fiscal year, FHA Commissioner Carol Galante said in a letter sent to Congress today. The agency has about $30 billion in liquid assets, but it needs more because it is required to keep enough money on hand to cover all projected future losses.